hb 1779 vehicle property tax collection a priority goal of the ncacc

HB 1779 Vehicle Property Tax Collection

A Priority Goal of the NCACC

W.A. (Pete) Rodda, CAE, RESDavid Baker, MPA, PPS

Dave Duty, NCDORTravis Isaacs, NCDOR

Greg French, Guilford County

HB 1779 ProjectGoals for today’s session.What today is not.Open EnvironmentSchedule for today

Welcome

HB 1779 Vehicle Property Tax Collection 2

Session 1; 9:00 am to 10:15 am 1779 Project Update

Break; 10:15 am to 10:30 am Session 2; 10:30 am to 11:45 am VTS Live

Demonstration Lunch Break; 11:45 am to 1:00 pm Session 3; 1:00 pm to 2:15 pm Building a Situs

Table Break; 2:15 pm to 2:30 pm Session 4; 2:30 pm to 3:30 pm Treatment of

Skipped Months/Unregistered MVs

Schedule

HB 1779 Vehicle Property Tax Collection 3

To improve the citizen’s experience:

• Reduce the number of government interactions.

• Eliminate the need for delinquent collections.

Reduce/share costs:

• Duplicate mailings (postage, materials, handling, and so on)

Increase Efficiency of an Existing Tax

• Improved collections and revenues.

• Improved compliance.

Project Goals

HB 1779 Vehicle Property Tax Collection 4

In the new system, property taxes willbe included with the “invitation to renew”:

• Assessor determines value, SITUS, and taxable status of the vehicle in advance – not in arrears.

• File is “delivered” to DMV to prepare the invitations to renew the registration.

• Taxes must be paid in order to obtain the registration – no partial payments will be allowed.

5HB 1779 Vehicle Property Tax Collection

New System: “Simultaneous Billing”

6HB 1779 Vehicle Property Tax Collection

STARS is a mainframe system, scheduled for replacement. RFI has been issued.

Decision was made to take a modular approach.

Vehicle Tax System will be a separate system housed at the NC DOR data center.

DMV maintains responsibility for titles and registrations.

DOR responsible for property tax administration.

Configuration

Counties work their first files in the new system in March/April, 2013 July, 2013 renewals Combined notices to be in mailboxes no later than June, 1,

2013

Old system and new system will overlap for four months Change in due date

Counties will now work two files for 5 months rather than 6!

Implementation

HB 1779 Vehicle Property Tax Collection 7

Registered Motor Vehicle Process Chart – July 2013 Implementation

  File Delivery/ File Delivery/          

Registration Processing Processing Notice Taxes Past Enforcement

Renewed Old System New System Prepared Due Due Begins Block Notice Block

Nov-12 Jan-13   Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13

Dec-12 Feb-13   Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13

Jan-13 Mar-13   Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13

Feb-13 Apr-13   May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13

Mar-13 May-13   Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13

Apr-13 Jun-13   Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

May-13 Jul-13   Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14

Jun-13 Aug-13   Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

Jul-13   Apr-13 May-13 8/15/2013 8/16/2013 N/A N/A N/A

Aug-13   May-13 Jun-13 9/15/2013 9/16/2013 N/A N/A N/A

Sep-13   Jun-13 Jul-13 10/15/2013 10/16/2013 N/A N/A N/A

Oct-13   Jul-13 Aug-13 11/15/2013 11/16/2013 N/A N/A N/A

Nov-13   Aug-13 Sep-13 12/15/2013 12/16/2013 N/A N/A N/A

Dec-13   Sep-13 Oct-13 1/15/2014 1/16/2014 N/A N/A N/A

Jan-14   Oct-13 Nov-13 2/15/2014 2/16/2014 N/A N/A N/A

Feb-14   Nov-13 Dec-13 3/15/2014 3/16/2014 N/A N/A N/A

Mar-14   Dec-13 Jan-14 4/15/2014 4/16/2014 N/A N/A N/A

Apr-14   Jan-14 Feb-14 5/15/2014 5/16/2014 N/A N/A N/A

May-14   Feb-14 Mar-14 6/15/2014 6/16/2014 N/A N/A N/A

Jun-14   Mar-14 Apr-14 7/15/2014 7/16/2014 N/A N/A N/A

8

RMV Process Chart_1.xlsx

MV Process Chart

HB 1779 Vehicle Property Tax Collection 9

Tax Association Meetings“Road Show” Demos planned for October, 2012NCAAO Fall Conference, Thursday November 15,

2012Statewide Training Sessions

February 8 through March 8, 2013 Potential sites include Wilmington, Greenville, Fayetteville,

Raleigh, Winston-Salem, Charlotte and Asheville. Webcasts

Statewide Training Opportunities

HB 1779 Vehicle Property Tax Collection 10

WHO DATE INTRODUCTORYTESTING

HB 1779 Vehicle Property Tax Collection 11

Conversion and Testing

SESSION SESSION3 Pilot Counties 9/17/2012 10/17-18/2012 10/22-26/2012

25 Counties 10/31/2012 11/26/2012 11/26-30/2012

100 Counties 12/21/2012 1/3-4/2013 1/7-25/2013

System Demo

HB 1779 Vehicle Property Tax Collection 12

Situs Session

HB 1779 Vehicle Property Tax Collection 13

Addresses in STARS

• County Code• County in which the vehicle was last registered • Controls which vehicles will be sent to a given

county• Provided by vehicle owner

• Residence Address (primary owner)• Where the vehicle owner resides• Provided by vehicle owner

• Lessee Address (primary lessee)• Not the address of the owner• Provided by leasing company at the time of

transaction or lessee

Addresses in STARS

• Mailing Address• Mailing address of the primary owner if different

from the residence address• Provided by vehicle owner

• One-Time Mailing Address • One –time temporary mailing address• Provided by vehicle owner

• Vehicle Location Address• SITUS address of the vehicle if different from the

residence address• Controlled by the counties

Addresses in STARS

• County Code and Situs Address will be controlled through the VTS• Counties will “send” vehicles to each other by

changing the county code in VTS• Process for mass change under development

• County code changes will be sent to STARS• Situs address changes will be made in the VTS

and sent to STARS

Business Rules

• An LPA can effectively change a situs at the request of the vehicle owner• Change in Residence Address

• If a Vehicle Location Address (situs) is present, a change in Residence Address will NOT trigger a change in situs• LPA must send the owner to the county

• If no Vehicle Location Address (situs) is present, a change in the Residence Address triggers a recalculation of the taxes in the VTS

VTS Situs Validation Process

SITUS Repository in VTS

• County Address ID• Three Components• Numeric, limited to 10 characters• Effective Date (MMDDYYYY)• End Date (MMDDYYYY)

• Street Number (maximum 6 characters)• Prefix (N, NW, W, SW, S, SE, E, NE)• Street Name (maximum 30 characters)• Street Type (mostly 2 to 4 characters)

SITUS Repository in VTS

• Suffix (N, NW, W, SW, S, SE, E, NE)• City• State• Zip (5 characters)• Parcel Number (PIN for address points)• Tax District Type (County, City, Fire,

Special)• Parcel Number

Address Ranges in VTS

• Street Range From• Street Range To• Parity (Even, Odd, Mixed, Unknown)• “Break” on tax districts

Tax Jurisdictions

• The VTS does not support traditional townships• Typically taxes are not levied for

townships• Hierarchy• County, City, Police, Fire, Special

Address Sources

• DMV Data• Tax Listings• GIS • Street Centerlines

• Planning Department• 911 files• 3rd party addressing• QAS, Peachtree Data, etc.

Tax Tax TaxStreet Street Street District District DistrictNBR Name Type City County City Fire Special

300Pineridge Dr Winston Salem FC WS WS301Pineridge Dr Winston Salem FC WS WS310Pineridge Dr Winston Salem FC WS WS311Pineridge Dr Winston Salem FC WS WS320Pineridge Dr Winston Salem FC WS WS321Pineridge Dr Winston Salem FC WS WS330Pineridge Dr Winston Salem FC WS WS331Pineridge Dr Winston Salem FC WS WS340Pineridge Dr Winston Salem FC WS WS341Pineridge Dr Winston Salem FC WS WS350Pineridge Dr Winston Salem FC WS WS351Pineridge Dr Winston Salem FC WS WS360Pineridge Dr Winston Salem FC WS WS361Pineridge Dr Winston Salem FC WS WS370Pineridge Dr Winston Salem FC WS WS

Address “Dump”

Tax Tax Tax

Address Street Effective End District District District

ID From To Parity Street Name Type City Date Date County City Fire Special

1000000001 300 360E Pineridge DrWinston Salem

01012012

01012999 FC WS WS

1000000010 301 361O Pineridge DrWinston Salem

01012012

01012999 FC WS WS

1000000020 580 638E Peace Haven RdWinston Salem

01012012

12312013 FC SF

1000000021 580 638E Peace Haven RdWinston Salem

01012014

01012999 FC WS WS

1000000030 581 639O Peace Haven RdWinston Salem

01012012

01012999 FC WS WS

1000000040 640 708E Peace Haven RdWinston Salem

01012012

01012999 FC WS WS

1000000050 641 709O Peace Haven RdWinston Salem

01012012

01012999 FC WS WS

1000000060 710 718E Peace Haven RdWinston Salem

01012012

12312013 FC SF

1000000061 710 718E Peace Haven RdWinston Salem

01012014

01012999 FC WS WS

1000000070 709 719O Peace Haven RdWinston Salem

01012012

01012999 FC WS WS

1000000080 720155

8E Peace Haven Rd Clemmons01012012

01012999 FC CL CL

1000000090 721155

9O Peace Haven Rd Clemmons01012012

01012999 FC CL CL

HB 1779 Vehicle Property Tax Collection 30

Vehicles not Handled by VTS

HB 1779 Vehicle Property Tax Collection 31

(1)    Motor vehicles exempt from registration pursuant to G.S. 20‑51.

(2)  Manufactured homes, mobile classrooms, and mobile offices.

(3)  Semitrailers or trailers registered on a multiyear basis.(4)  Motor vehicles owned or leased by a public service

company and appraised under G.S. 105‑335.(5)  Repealed by Session Laws 2000, c. 140, s. 75(a),

effective July 1, 2000.

Vehicles not Handled by VTS

HB 1779 Vehicle Property Tax Collection 32

(6)  Motor vehicles registered under the International Registration Plan.

(7)  Motor vehicles issued permanent registration plates under G.S. 20‑84.

(8)  Self‑propelled property‑carrying vehicles issued three‑month registration plates at the farmer rate under G.S. 20-88.

County codes the vehicle as such within the VTS and the notice only has the registration fee on it.

Application for exemption must be filed within 30 days of the due date.

DMV or LPA can not exempt a vehicle.

Exemptions and Exclusions

HB 1779 Vehicle Property Tax Collection 33

Will be handle the same way as today. Assessor will situs, appraise, assess

the vehicles in the VTS. The VTS will send the amount of taxes

due to STARS. DMV will mail and collect. Due date is the 15th of the month. Appeal – Value appeal must be made

with 30 days of due date.

Renewals

HB 1779 Vehicle Property Tax Collection 34

Real time Sales price used as the value if it is

a dealer sale. This will help with trailers, RV and

special vehicles.

New Registration

HB 1779 Vehicle Property Tax Collection 35

Issues – Limit Registration PlateLRP

Buyer can choose to get a limited registration. Plate will be marked with a “T” rather than a

year. Good for the month plus 2 more months. March purchase - good till May 31. Buyer will be sent a combined notice 15 days

after registration and title work is submitted. When tax is paid, buyer will get the full year

registration. (A year sticker to place over “T”)

SB 826 Minimal tax bills 105-321(f) Appeals/Exemption 105-330.2 and 105-

330.3(b) Interest – 105-330.4 – ¾% interest

starts the second month after the due date.

Collection remedies still in place for any taxes bill under the current/old system.

Leg. Changes

HB 1779 Vehicle Property Tax Collection 38

Stops double taxation. Allows vehicles to be billed for

missing months. Bill as unregistered in county

system. Spreadheet:

E:\Unregistered vehicle bills.xlsx

Unregisterd vehicles105-330.3(a1)

HB 1779 Vehicle Property Tax Collection 39

Appeals – must be made with 30 days of due date.

If before payment, STARS system will recalculate the amount of taxes due.

If after payment VTS system will calculate the amount of refund due.

Appeals and Refunds

HB 1779 Vehicle Property Tax Collection 40

HB 1779 Vehicle Property Tax Collection 41

Questions?